Medicaid is a significant joint federal and state program that can provide long-term care (LTC) when needed. Due to the incredible costs of this care, many seniors could not afford it without Medicaid. However, the eligibility requirements include draconian asset and income limitations, making qualifying difficult. 

An Medicaid Asset Protection Attorney from Mortellaro Law in Florida can help simplify your Medicaid planning with several effective asset protection strategies. We review some of the most common below. 

Medicaid Asset Protection 

Medicaid asset protection is completely legitimate and legal. After working all your life to build a legacy and paying federal and state taxes, why surrender everything you’ve worked for to enjoy this government benefit? Florida law allows you to protect your assets and still enjoy government benefits for long-term medical care if the need arises. 

Medicaid asset protection shields assets, so they are not considered in eligibility calculations. They can also protect your home from the Medicaid Estate Recovery Program (MERP).

Spousal Asset Transfers 

Spousal Asset Transfers is a strategy that can be used when only one married spouse needs long-term care in a nursing home or home care from Medicaid. In such cases, certain Spousal Protections apply to ensure that the healthy spouse does not become impoverished. 

In 2024, the non-applicant spouse in Florida is generally allowed to keep up to $154,140 in countable assets. However, the Medicaid applicant is usually only allowed $2,000. The amount of assets the well spouse can retain, including mutually held assets, is the Community Spouse Resource Allowance (CSRA). This strategy prevents the non-applicant spouse from living in poverty and can also lower the applicant’s resources to within Medicaid’s compliance levels.  

Medicaid Annuity 

If only one married spouse applies for Nursing Home Medicaid or an HCBS Medicaid Waiver, a Medicaid annuity may be a good strategy. The annuity transforms countable assets into non-countable income for the non-applicant spouse. Creating this annuity requires making a lump payment to an insurance company, which then pays the healthy spouse monthly. 

The annuity must be irrevocable and immediate and the monthly payments cannot surpass the recipient’s life expectancy. Medicaid annuities are also viable strategies for single applicants, but the income is counted toward Medicaid’s income limit. Therefore, this may not always be the best or most feasible option.

Medicaid Trust 

A Medicaid Asset Protection Trust (MAPT) can be a great option for individuals who want to protect their assets from being counted towards Medicaid’s asset limit. In this type of trust, assets are put into an irrevocable trust, which is no longer considered owned by the person who created the trust (the Medicaid applicant). 

The value of assets that can be placed in this trust is unlimited. However, to avoid Medicaid’s Look-Back Period, which results in a Penalty Period of ineligibility, these trusts should only be utilized well before the need for long-term care Medicaid. It’s important to keep in mind that this strategy is not recommended if Medicaid is needed in the near future.

Plan Ahead with a Florida Asset Protection Attorney 

Timing is everything when you need asset protection for Medicaid eligibility. A Florida Medicaid Asset Protection Attorney from Mortellaro Law in Tampa can help you shield your assets with legal and effective strategies that make your Medicaid application and approval much smoother. Call Mortellaro Law at (813)-367-1500 in Tampa today to arrange a free consultation about Medicaid asset protection planning.